Apple Faces Hurdles Integrating Baidu AI into iPhones in China

Apple and Baidu are facing challenges in incorporating AI features into iPhones sold in China, a situation that could affect Apple's sales in the world's largest smartphone market, according to Reuters, which references a report from The Information.

The two companies are collaborating to adapt Baidu's large language models (LLMs) for iPhone users in China. However, the integration process is proving challenging, with issues reportedly arising in the LLMs' comprehension of prompts and accuracy in responding to common queries.

"The companies, which are adapting Baidu's large language models for iPhone users, are grappling with issues such as the LLMs' understanding of prompts and accuracy in responding to common scenarios, according to the report," Reuters states.

Apple's recent iPhone 16 launch faced criticism in China for its lack of advanced AI capabilities, highlighting the growing importance of AI features in the Chinese smartphone market. Rival Huawei, for instance, saw a significant 42% surge in sales during the third quarter, while iPhone sales in China experienced a slight 0.3% decline, according to October data from research firm IDC.

The report also highlights a conflict between Apple's stringent privacy policies and Baidu's data collection practices. Apple's privacy protocols prevent the collection of user data related to AI queries, while Baidu aims to collect and analyze this data for model improvement and development.

Baidu's Ernie 4.0, its most advanced model, is being used as the foundation for Apple's generative AI (genAI) services across its iPhone, Mac, and iPad product lines, according to The Information. The report also suggests that Siri will leverage Baidu's AI models.

Apple and Baidu have not yet responded to Reuters' requests for comment.